High Court Holds Board of Directors Liable for Environmental Pollution
Board of directors collectively liable for pollution, says HC
Hindustan Times
Image: Hindustan Times
The Lucknow bench of the Allahabad High Court ruled that the board of directors of M/s Simplex Infrastructures Limited is collectively responsible for environmental pollution. This decision came after the Uttar Pradesh Pollution Control Board initiated criminal proceedings against the company for violating pollution norms during a project at Panki Thermal Power Station in Kanpur.
- 01The board of directors is collectively liable for a company's environmental conduct.
- 02The Allahabad High Court dismissed applications to quash criminal proceedings against directors of M/s Simplex Infrastructures Limited.
- 03The case stems from a 2021 complaint by the Uttar Pradesh Pollution Control Board.
- 04The court emphasized that defenses must be presented during the trial, not pre-trial.
- 05The ruling reinforces accountability for corporate environmental violations.
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The Lucknow bench of the Allahabad High Court ruled on April 15 that the board of directors of M/s Simplex Infrastructures Limited is collectively responsible for the company's business conduct, particularly regarding environmental pollution. This ruling came after the Uttar Pradesh Pollution Control Board (UPPCB) filed a complaint against the company for violating environmental norms while working as a sub-contractor for Bharat Heavy Electricals Limited (BHEL) at the Panki Thermal Power Station in Kanpur. The UPPCB initiated criminal proceedings under Section 37 of the Air (Prevention and Control of Pollution) Act, 1981, alleging that the company operated without necessary consent. The court found no merit in the directors' applications to quash the proceedings and stated that any defenses should be raised during the trial. The ruling underscores the legal accountability of corporate boards in environmental matters.
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This ruling may lead to increased accountability for corporate directors in environmental matters, potentially influencing how companies manage their operations to comply with pollution regulations.
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